You havent got the money! Phillips savages Labour over plans to sink £25bn on day one

Labour’s Rachel Reeves grilled on plans for business rates

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Sky News’ Trevor Philip ripped into Labour’s plans for the economy, saying they would lose £25bn “at the stroke of a pen”. He challenged Shadow Chancellor Rachel Reeves on where Labour would find the money for its spending plans, questioning whether it was a repeat of the “magic money tree again”. Ms Reeves reiterated Labour’s plans to abolish business rates and she said a Labour Budget would be used to “cut VAT on gas and electricity bills”. 

Mr Phillips said: “If you are not going to find extra money from Andy Burnham’s money, or Tracey Babin’s £830m, or the skills budget, where is this coming from?

“Or is this the magic money tree turning up again?”

Ms Reeves responded: “You are asking what Labour would do if it was our budget on Wednesday.

“Our priority is to ease the cost of living crisis, helping businesses and addressing the long-term challenges with the climate crisis and trying to buy, make and sell more in Britain.”

JUST IN: Andy Burnham blasts toxic Scottish nationalism amid Covid travel row

She added: “If it was our budget, we would cut VAT on gas and electricity bills because we know what a difficult time it is at the moment.”

Mr Phillips interrupted the Shadow Chancellor at this point, saying: “But, last time you were on, you said you would abolish business rates at a stroke of a pen.

“That will cost £25bn. You might be able to find a bit of underspending here or there, but it won’t count to £25bn. You haven’t got the money!”

Ms Reeves struggled to account for the £25bn loss, saying that Labour would increase the digital services tax on firms, but that would only bring in £2bn.

Rishi Sunak grilled by host on UK's productivity investment

She said: “On business rates, we would freeze business rates, and pay for that by increasing the digital services tax on firms that have done well in the last 18 months.

“That would bring in £2bn. Labour has committed to abolishing business rates and replacing it with a fairer form of business property taxation.”

In his interview earlier in the programme, Chancellor Rishi Sunak has said the outcome of a “fundamental review” of business rates would be outlined in the budget.

The Shadow Chancellor also criticised Mr Sunak’s announcement of  £7 billion of investment in transport. 


Trevor Phillips blasts Rishi Sunak’s spending plans [INTERVIEW]
World leaders ‘greeted by SNP’s mismanagement’ ahead of COP26 [VIDEO]
BBC Weather: Warm tropical Azores blast to grip UK next week [FORECAST]

She said these promises have been made “60 times” without “a single spade in the ground on the rails”.

Ms Reeves said the North of England is “sick of announcements” without “concrete action to match the rhetoric of the government”.

The MP added: “Of course new money is welcome, but it needs to be backed up with action.”

When asked whether there will be tax cuts, Mr Sunak insisted next week’s Budget is “about the future”.

Source: Read Full Article